£150 Million Government Funding to Prevent Rise in Bus Fares

Millions of people will continue to travel for less from today (1 January 2025), thanks to over £150 million in government funding to stop bus fares rising for passengers.

Under inherited plans, funding for the previous cap on bus fares had been due to expire at the end of 2024. But as part of the government’s commitment to put more money in people’s pockets as part of the Plan for Change, it has stepped in to maintain a cap in 2025.

The funding will see single bus fares on routes included in the scheme capped at £3 across England until the end of 2025, which will support travel in rural communities and towns where there is a heavy reliance on buses. 

Passengers could save up to 80% on some routes, such as Leeds to Scarborough, where fares were set to soar to £15 without government intervention to keep bus travel affordable for all.

Fares between £2 and £3 that were previously capped at £2 will not all automatically rise to £3, with fares only allowed to increase by inflation in the normal way.

Local authorities and Metro Mayors can also fund their own schemes to keep fares below £3, as Andy Burnham (Greater Manchester) and Tracy Brabin (West Yorkshire) have recently pledged.

The significant intervention comes on top of £955 million invested to improve bus service frequency and reliability across the country.

Local Transport Minister, Simon Lightwood, said:

Buses are vital to help people get to work, the doctor, or see their friends and family – they boost growth, support communities, and provide opportunity.

That’s why we’re stepping in to make sure fares are capped at the lowest point possible, saving people up to 80% on travel and ensuring that our buses continue to be an attractive, affordable way to get around.

As we rebuild Britain with our Plan for Change, this £150 million investment is just the beginning. Our Bus Services Bill is currently passing through Parliament and will hand power back to local authorities to choose how they want to run their local buses – giving them greater control over fares, routes, and timetables.
The £150 million investment will prevent a price-hike for millions of passengers, keep fares affordable across the country, and improve access to opportunities, particularly in towns and rural areas, while offering value for the taxpayer. 

https://www.gov.uk/guidance/3-national-bus-fare-cap#north-west